OHA Market Update Series - March 27, 2025
National: Young adults are moving to small towns and rural areas at the highest rate in nearly a century, fueling economic growth and revitalization. This shift, driven by remote work flexibility, affordability, and lifestyle preferences, is reshaping demographic trends across the U.S.
Local: The Sendero development in Bastrop is set to transform the area with 782 new multifamily housing units, dining, retail, and health services, fostering economic growth and improving quality of life. This project will stabilize rent prices and provide long-term investment opportunities for homebuyers and sellers.
Intrigued? Keep reading. (4 minute read)
National Real Estate Update
Housing Trends, Interest Rates, and Market Forecasts
Young Adults Are Revitalizing Small Towns: The Biggest Migration Shift in Decades
Young adults are shaking up the housing market by moving to small towns and rural areas at the highest rate in nearly a century. This trend started around 2020, fueled by remote work, affordability, and a desire for more space—but it’s not slowing down. Here’s what the data tells us:
Since 2020, 75% of young adult growth (ages 25-44) has happened in cities with fewer than 1 million residents or in rural areas.
In contrast to the 2010s, when 90% of young adults moved to large metros, today’s migration is favoring smaller communities.
Income levels in these areas have risen, showing that many young professionals have held onto remote jobs.
New business formation in small towns has surged, with IRS applications up 13% in rural areas since 2019.
Top natural amenities are a major draw—places with mountains, lakes, and open spaces (like Colorado’s Chafee County) are seeing the biggest influx.
Big metros like NYC and LA are still losing young professionals, a trend that actually started in 2017 before the pandemic.
Even with companies calling workers back to the office, many young adults are keeping their "geographic flexibility" and making small-town life work. The real estate market in these areas is booming, and "Zoom towns" are proving they’re more than just a pandemic trend—they’re the future.
OHA’s HOT TAKE:
This shift is important because it’s reshaping the housing market, job landscape, and local economies in a big way. Here’s why:
Rural Revitalization – Many small towns that were struggling with aging populations and economic stagnation are now seeing a resurgence of young professionals, entrepreneurs, and families. This means new businesses, stronger local economies, and fresh energy in these communities.
Housing Market Impacts – Demand for homes in smaller cities and rural areas is growing, driving up prices in traditionally affordable markets. For buyers, this means more competition, while for sellers, it’s an opportunity to get strong returns.
Remote Work Stability – Even as some companies push for in-office work, many workers have maintained their remote jobs. This signals a long-term shift in where people can live and work, which could impact commercial real estate in big cities and infrastructure investment in smaller communities.
New Business Growth – With IRS data showing a 13% increase in business applications in small towns, young adults aren’t just moving—they’re starting businesses. This could create more job opportunities and boost local economies.
Changing Urban vs. Suburban Dynamics – Big cities are losing young professionals, which could lead to declining rental demand and shifts in urban planning. Meanwhile, small towns are adapting to accommodate this new population with improved housing, amenities, and infrastructure.
In short, this migration isn’t just a trend—it’s a fundamental shift in how and where people want to live, work, and build their futures.
Thinking about making a move? Whether you're looking for more space, a better quality of life, or new opportunities in a growing community, now is the time! Let's find the perfect home for you—reach out today!
Austin Area Real Estate & Community Update:
Market Trends, Local News, and Neighborhood Insights
Sendero Development: A Game-Changer for Bastrop's Housing, Amenities, and Economic Growth
A 75-acre mixed-use development, Sendero, is underway in Bastrop, led by Pearl River Companies. The project aims to bring housing, retail, dining, and health and wellness services to the growing community. Key highlights include:
Housing Expansion: 782 multifamily apartments, with half already completed in Alta Trails.
New Businesses: Dining options like Chuy’s, Jersey Mike’s, Einstein Bros. Bagels, and Texas Roadhouse (opening in 2026).
Health & Wellness Hub: 90,000 sq. ft. dedicated to medical and fitness services, including a 43,000 sq. ft. first-phase building.
Infrastructure Improvements: A new turn lane on Hwy 71 and internal roads for better connectivity.
With an estimated completion by 2030, Sendero is designed to support Bastrop’s rapid growth by offering much-needed resources, stabilizing rent prices, and enhancing local amenities.
OHA’s HOT TAKE:
Housing Demand: The Sendero development in Bastrop will add 782 multifamily housing units, with half already completed in Phase 1. This expanded housing supply can help stabilize local rent prices, which is essential for potential renters and buyers who may have been facing rising costs due to high demand and limited supply.
Improved Amenities and Services: The development will bring new dining options, retail, and health and wellness services, including fitness centers, pediatric care, dental services, and more. These amenities make Bastrop an even more attractive place to live, enhancing the quality of life for residents and providing convenience. For homebuyers, this could increase the appeal of the area for long-term living.
Economic Growth: With the addition of businesses like Chuy’s, Texas Roadhouse, and various health services, the development will create new job opportunities, stimulating the local economy. This could attract both buyers and renters looking for work opportunities in the area.
Better Transportation: The development's location at the intersection of Hwy. 71 and FM 969, with improved road access and a designated turn lane, enhances the area’s connectivity. This improved infrastructure makes Bastrop more accessible, particularly for commuters, and could increase the attractiveness of homes in the surrounding area.
Long-Term Investment: For sellers, the development signifies long-term growth and investment potential. As more businesses, amenities, and housing units are added, property values could rise. Homebuyers considering purchasing in the area now may benefit from future appreciation in property values as the community grows and evolves.
Overall, this development marks a significant transformation for Bastrop, creating a more vibrant and self-sustaining community that will appeal to future homebuyers and sellers seeking better housing options, amenities, and economic opportunities.
Jennifer Carey
Realtor and Agent Success Manager at Open House Austin, real estate investor, and renovation enthusiast with Wimberley Airbnbs. She loves mid-century modern design, hiking Austin with her dogs, yoga, and exploring creative hobbies like painting, pottery, and piano. 🎶✨
